Kenyan shilling flat, seen vulnerable

NAIROBI Mon Aug 18, 2014 4:10am EDT

Related Topics

NAIROBI Aug 18 (Reuters) - The Kenyan shilling was steady on Monday but was seen vulnerable if the tight money market conditions ease up, traders said.

At 0705 GMT, commercial banks quoted the shilling at 88.05/88.15 to the dollar, unchanged from its closing level on Friday.

The shilling has been supported by tighter conditions on the interbank market, where the weighted average lending rate rose to 11.9492 percent on Friday from about 7.5 percent in mid-July.

Commercial Bank of Africa trader Joshua Anene said the shilling looks vulnerable as the currency had been weakening over the past two weeks even though liquidity has tightened.

"That tells you that if money market conditions improve, and the rates come down, then the shilling should come under pressure," he said.

Anene added that the central bank may once again intervene if the shilling continues weakening.

Traders forecast the shilling was likely reach 88.30 once liquidity eased.

...........................Shilling spot rates .....................Shilling forward rates .......................Cross rates ..................................Local contributors .......................Central Bank of Kenya Index .....................Kenyan Bonds contributor pages ...............Treasury bill yields ..................Central bank open market operations .........................Horizontal repo transactions ,................Daily interbank lending rate .............................Kenya Bond pricing ..................Real time Africa economic data <ECI & AFR> ...........................African economic news .................................NSE-20 Share Index .................................NSE All Share Index ...........................FT NSE Kenya 15 Index .......................... FT NSE Kenya 25 Index SPEED GUIDES:

(Reporting by Drazen Jorgic)

FILED UNDER: